MNI BRIEF: PBOC To Remain Accomodative, Governor Says

Chinese monetary policy will continue to be accommodative to support economic growth though downward external shocks and Covid, People’s Bank of China Governor Yi Gang told China Global Television Network, adding that the PBOC will also emphasise structural policies to support small- and medium-sized businesses and the green transition.

The outlook for inflation is stable, Yi Gang said, according to an English transcript of the interview. Price stability and maximising employment are high priorities for the PBOC, he said.

Market interest rates have been trending down over the past 10 years, he said. Asked about the recent depreciation of the yuan, he noted that it has appreciated by 25% against the U.S. dollar and by 30% against a currency basket in nominal terms over the past 20 years, and by more than that in real terms.